03.01.201811:56 Forex Analysis & Reviews: Bitcoin analysis for 03/01/2018

The President of Russia, Vladimir Putin, commissioned subordinate officials to create a national cryptocurrency - Cryptoruble. According to the Financial Times, it would be an effective way to bypass Western sanctions. Cryptoruble would be an equivalent to a traditional ruble and its circulation would be limited in such a way that officials could follow its individual movements. It is however not clear whether it would be issued by the Central Bank.

In summer 2017, there was a meeting between the founder of Ethereum, Vitalik Buterin, and President Putin, after which he ordered his officials to develop a framework for the future project. In October 2017, the authorities of the Russian Federation introduced new regulations regarding cryptocurrencies, including registrations of miners, as well as additional provisions to safeguard ICO projects.

Anton Siluanov, Russia's finance minister, said his department would regulate the use of cryptocurrencies, but he has no intention of forbidding them because they are "a reality."

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The triangle pattern scenario for a corrective structure in wave 4 is still possible as no new low was made yet. The market has broken the golden trend line and now is trading just below the technical resistance at the level of $16,636. This level is expected to be tested sooner or later if the triangle pattern is to develop.